Malaysia to Benefit as Global Funds Pare Exposure to US

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Watch Malaysia to Benefit as Global Funds Pare Exposure to US - Bloomberg on Dailymotion

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00:00Really good to have you with us, Novan. Thank you for doing this.

00:03For starters, give us a sense of how your corporate clients are positioning amid the geopolitical uncertainties.

00:10What are you seeing in terms of sectors? Are they still investing, still spending, still seeking financing?

00:17Well, Avril, thank you very much for having me.

00:20I would divide this into two components.

00:23One are businesses that are already in the pipeline, things that have already been committed.

00:28Approvals have already been received.

00:32For a lot of those investments, those are still ongoing.

00:35I mean, we, CIMB, are in the middle of those discussions with corporates throughout Southeast Asia.

00:41And we see whatever is in the pipeline being executed as planned.

00:48For new investments, naturally, people are a lot more cautious, given the uncertainties at the moment,

00:56given the 90-day pause, you know, given the ongoing discussions.

01:00So, naturally, you would see corporates being a lot more cautious for new investments.

01:08But for us in CIMB, we continue to be very, very close to our clients.

01:14We, in fact, we are a lot more closer to them now, given the uncertainties.

01:18You know, that capital coming to ASEAN, Malaysia perhaps a beneficiary of this.

01:23Because in terms of when you look at the lay of the land, maybe foreign outflows, compared to other Southeast Asian countries,

01:29maybe haven't been as bad.

01:31The ringgit has been stable as well.

01:33Do you think all this is enough for investors to perhaps look at Malaysia and view it as a sort of safe haven?

01:39Well, based on our discussions with foreign investors today, I mean, investors are looking for various things.

01:47They're looking for political stability.

01:49We have that in Malaysia.

01:51You know, we have reached that maturity where we're now operating in a coalition government.

01:56The government is doing all the right things.

01:58We're also seeing a lot of commitment from the government to have better fiscal position,

02:04very targeted, you know, subsidy rationalization, which improves the fiscal position of the country.

02:12And then, as you mentioned, it's a stable ringgit.

02:16You know, despite maybe, you know, over the last one year, you would see some equity outflows.

02:21But then we're seeing similar inflows into the local bond market.

02:26And inflows into the bond market demonstrates the confidence of investors in the country itself,

02:31rather than any specific corporate per se.

02:34So, we have all the parameters, you know, that, in my view, tick the boxes for investors

02:41as they look at asset allocation and investments.

02:45So, as a result of that, I do see Malaysia standing out relative to other markets.

02:49So, let's see you next time.

02:50I'm going to go first.

02:50So, let's see.

02:52I'm going to go first.

02:58Bye-bye.

03:11Bye-bye.

03:13Bye-bye.

03:14Bye-bye.

03:15Bye-bye.

03:16Bye-bye.

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